Fraudulent Transfers: What Constitutes “Adequate Capitalization”?

Editor’s Note:  References herein are to the Uniform Voidable Transactions Act (final version) (“UVTA”) promulgated by the Uniform Law Committee, which is based on the predecessor Uniform Fraudulent Transfer Act (“UFTA”). Section 4 of the UVTA, based on its corresponding predecessor Section 4 of the UFTA, is the most frequently-cited rule for defining voidable transactions (aka, fraudulent transfers).  Paragraph (a) …